The Price of Experience

We would like to thank Daron Acemoglu, Rui Castro, Aureo De Paula, Jeremy Greenwood, Elena Krasnokutskaya, Bob Lucas, Richard Rogerson, Ludo Visschers and seminar participants at the Atlanta Fed, U of Alberta, UC Berkeley - Haas School of Business, U of Bonn, UC San Diego, UC Santa Barbara, Cleveland Fed, Korea University, NYU, NYU - Stern School of Business, Seoul National University, U of Pennsylvania, the Philadelphia Fed, the Fed Board of Governors, USC - Marshall School of Business, U of Toronto, 2008 Korean Econometric Society Summer Camp Macroeconomics Meeting, the 2007 NBER Summer Institute, New York Fed/Philadelphia Fed Conference on Quantitative Macroeconomics, 2008 Midwest Macro meetings, 2008 Minnesota Workshop on Macroeconomic Theory, 2008 SED annual meeting, and the Search & Matching Club meeting at the University of Pennsylvania for their comments. This research has been supported by the National Science Foundation Grants No. SES-0617876, SES-0922406 and the Bank of Korea. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.